Owning a property business means going through a heap of paperwork for every business transaction made regarding the property. No matter how big the property is, it can be challenging to keep track of expenses like maintenance and repairs.
Whereas a regular accountant may not be up-to-date with the current rules and regulations related to property dealings in the country or province, a property accountant provides expert financial strategies for your company.
The right accountant will save you more money in the long run and minimize the expenses that your property business could incur annually. Choose a property accountant who is an industry specialist and skilled in protecting your business interests by helping you make smart investments.
What is a Property Accountant?
A property accountant’s expertise is in drafting financial strategies and making reports for property developers and owners. Certain duties of a property accountant include – but are not limited to – tax preparation, consulting, strategy, budgeting, and preparing annual reports. Their job is to handle the day-to-day financial transactions of assigned property.
Here are five benefits of hiring a property accountant:
1. Save on taxes
With increasing property prices, even a small tax break could provide a sense of relief to renters and investors. If you try managing all taxes yourself, one wrong move could significantly impact your investment.
A major reason for hiring an accountant specializing in real estate is to minimize tax obligations and avoid breaking the law. A good accountant will be able to identify ways to eliminate tax liability and provide tax relief to property investors. They make owning property a highly profitable business by reaping the benefits of certain tax laws associated with real estate investments.
2. Optimize investment
When you have bought valuable assets, it is normal to want to ensure that your investments are aligned with your goals. Investing in properties involves large sums of money. Those who begin practicing good property accounting at the very beginning will find it easier to scale up and grow their portfolio. Property accountants are aware of how the subtle details of both state and federal tax can be leveraged to an investor’s benefit.
As a client, you will get proper guidance as to which method of accounting would be the best for your business. They also help you plan and budget your next transaction with optimized financial reports.
3. Structure your business
A property accountant can advise you on the ideal structure of your property investment business. They can help you choose whether you should run it as a sole proprietorship, limited liability company (LLC), S corporation, or C corporation.
Without the help of an expert, you are liable to lose a lot of money in paying taxes every year due to wrongly structured business. A property accountant understands the potential tax benefits of holding rental property under a specific legal structure.
4. Make business decisions
The job of a property accountant isn’t limited to filing taxes and tracking a company’s financials – they are more than capable of helping you make proper and objective business decisions by performing tasks such as asset evaluations and budget studies that are based on facts and figures.
These numbers are updated by the accountant with changing federal laws now and then. You can rest assured that your property deals are being made as per the latest government guidelines. A property accountant regularly studies real estate market conditions to help you plot a well-informed strategy for a successful business.
5. Update Records
The legal requirements related to property ownership entail keeping company accounts up to date. Having access to updated accounts can be beneficial for property transactions as you can get an overview of how much profit or loss a property sale can make.
A skilled accountant can help you monitor accounts payable to ensure that all obligations are fulfilled on time. In addition to this, late payments can be tracked, and receipts and bills can be managed effectively. Accurate record-keeping will benefit property owners in the long term and provide a sense of satisfaction that everything is in order.
A property accountant provides industry-specific accounting and financial services. They will ensure that your transactions are tax compliant and help you work in a financially efficient way. You get an overview of the financial health of your business and where it stands in the current market.
At AHK Accounting Recruiters, we specialize in connecting talented, qualified and dedicated accounting professionals with successful, reputable organizations. Our agency specializes in accounting and finance recruitment in Ontario.